ConocoPhillips Q2 Earnings Call Highlights

ConocoPhillips produced 2.248 million barrels of oil equivalent per day during the second quarter, exceeding its guidance range. The company’s Permian production exceeded 900,000 barrels per day, reaching a record 920,000 barrels per day during the quarter, according to management.

O'Brien said adjusted earnings were $3.24 per share. Cash flow from operations totaled $7.2 billion, while capital expenditures of $3 billion resulted in $4.2 billion of free cash flow. Shareholder distributions totaled $3 billion, including $2 billion of share repurchases and $1 billion in ordinary dividends. Share repurchases doubled from the prior quarter. The company ended the quarter with $8.1 billion in cash and short-term investments, plus $1.2 billion of liquid long-term investments.

For the third quarter, ConocoPhillips forecast production of 2.290 million to 2.320 million barrels of oil equivalent per day. O'Brien said the anticipated sequential increase reflects a production ramp in Qatar and continued Lower 48 growth, more than offsetting the July sale of non-core assets producing about 15,000 barrels per day. The company maintained its full-year guidance.

O'Brien said ConocoPhillips averaged a roughly 40% payout rate in the first half and expects to increase distributions during the second half in order to meet its 45% full-year target.

ConocoPhillips completed its previously announced $5 billion disposition target ahead of schedule, including $1.7 billion of non-core Lower 48 asset sales completed in July. O'Brien said the company would continue to evaluate its asset base, describing portfolio high-grading as an ongoing...